Why Pay for Insurance but Can't Get a Loan?

[Norwayguy]

Suppose that I had car insurance for ten years and never even once needed the ins company to pay for something I did and then after 10 years i decide i don't wanna drive/wanna switch companies. why shouldn't the insurance company give me all my money back besides what they needed to make their company function(ads/pay officeemployees/etc)
??

Drank235 Insurance companies spread the risk from just you among many people because if they insure 1,000 people they know X number of people are going to have claims, they may not know exactly who will have a claim but how many people would. So your premiums are being used to cover claims. This is how the company can and will pay a claim up to the limits of your policy which can be hundreds of thousands of dollars even if you have only made 1 premium payment. You may feel that after 10 years of premium payments withouth a claim you should get your money back but what happened is that you recieved the coverage for those 10 years and had there been a claim the company would have been on the hook.

Do you think it would be right to expect the company to take on the risk of claims for 10 years and then just give you your money back...or as you said to keep the money needed to run the company....Well they are keeping the money needed to run the company because your premium dollars have been used to pay claims.

 

[justing]

Obama will do the monitoring. I think he is planning on pushing that through congress on his 3rd term

 

[FLInsa]

 

[arnguy]

FLInsa, that button is a terrific idea. Maybe we can furnish that to the moderators so they can lock up these old threads that some new forum members bump to boost their number of posts.